Stock Legal Meaning and Definition

Here is a simplified definition of the legal term Stock.

Stock (noun)

1. The collection of goods, merchandise, or cattle that a business has available for sale or trade.

2. In financial terms, stock also refers to the shares into which a company’s capital is divided, with holders of the stock known as shareholders. They have the potential to gain profits or incur losses, depending on the performance of the company.

This term is commonly used in sectors like retail, farming, and stock market trading.